Radiant to sell part of Bukit Barisan block to strategic investors

PT Radiant Utama Interinsco Tbk may sell part of its ownership in the Bukit Barisan Tenggara block in West Sumatra to strategic investors as one of alternatives to raise funds for the development of the field.

The company?s corporate secretary Coki Lubis said in Jakarta recently that the company was still in talks with a number of investors for the purchases of part of its ownership in the block which is projected to begin production in 2013.

?Our ownership in the field reached 100 percent. If there are strategic investors willing to jointly develop the field, they can acquire 50 percent of the ownership,? he said. In addition to selling part of the ownership of the field, Radiant might also issue bonds to partly finance the development of the field, he added

Coki said that Radiant would need between US$10 million and $15 million to develop the oil and gas field. The company has spent up to $4 million for the project, part of which was used for seismic survey.

The Bukit Barisan Tenggara block was previously called Singkarak block.

Meanwhile, Yarmanto, exploration manager of PT Radiant Bukit Barisan, Radiant's subsidiary tasked to handle the block, said the firm will continue explorations in Sijunjung, Solok regencies and Sawahlunto mayoralty this year.

2D seismic surveys will be carried out this year, which will be followed by 3D surveys at the end of 2011. Drilling of exploration well will be conducted end-2012, Yarmanto said.

The government data say there two wells were drilled in the block in the past, respectively by Chevron and Apache. (Bernard)